The proposal would have made Calif. the first state to ban smoking throughout its park system.
Under a compromise, smoking would still be allowed in camp sites and parking areas. The fine for violators who light up anywhere else would be $100.
The bill is seen as another step toward eliminating exposure to second-hand smoke.
Julie Beutz has been a smoker most of her life, but she said she supports the idea.
"To see a little kid take his little shovel and pour it in a bucket and have a cigarette butt fall out, it's just gross," she said. "It's kind of one of those things that hurts other people. Kind of like when you drive erratically. You may think you have control of your car, but you're putting other people in danger."
Jim VunCanon also said he hoped the proposal was approved.
"I don't like big government, but at the same time, I'm aware of the health hazards of smoking, not only to those who do it, but those around them," he said.
The state Senate has already approved the legislation.
The Associated Press contributed to this story.